The latest update from the federal broadcast regulator reveals a revised definition of Canadian content, emphasizing the necessity for human creative control over AI involvement to meet the qualification criteria. The revised definition maintains a points-based system, evaluating the Canadian essence of a production by the involvement of Canadian individuals in key creative roles.
The modernized definition expands the scope of qualifying positions to include roles such as showrunner, special effects director, and head of costuming, emphasizing the importance of human presence over AI in these roles. While recognizing AI’s potential as a creative tool, the regulator stresses the significance of humans retaining creative authority to support economic opportunities and fair compensation for Canadian creators.
Moreover, the updated definition allows productions to earn extra points for incorporating cultural elements like identifiable Canadian characters, settings, or stories based on Canadian publications. This broader approach aims to facilitate more productions securing Canadian certification, fostering collaborations, increased funding for Canadian productions, and ensuring a diverse range of content, from high-budget productions to smaller-scale projects.
The new Cancon definition, applicable to both traditional media and online streaming services, follows a public hearing and aligns with the ongoing implementation of the Online Streaming Act. This act aims to modernize broadcasting laws to encompass online platforms like Netflix, introducing disclosure requirements for major streaming services to publish their revenues and expenditures on Canadian content.
While certain online platforms have expressed concerns about data disclosure impacting their market competitiveness, the regulator emphasizes the public interest in transparency outweighing potential harm. The decision also introduces a minimum copyright ownership requirement, mandating that at least 20% of copyright must be Canadian-owned for a production to qualify as Canadian content.
In response to the decision, the Motion Picture Association-Canada, representing prominent streamers like Netflix and Disney, is assessing its implications. Additionally, foreign streamers are challenging previous directives requiring financial contributions towards Canadian content production, while the Cancon decision aims to strike a balance by enhancing flexibility and acknowledging the significance of Canadian intellectual property ownership.
The Canadian Association of Broadcasters has welcomed the CRTC’s decision, highlighting its balanced approach, flexibility enhancements, and efforts to streamline reporting requirements for foreign and Canadian broadcasting entities.